Horgen, Switzerland - July 18, 2006

Raw material and energy costs related to the production of polyethylene have reached unprecedented levels. At the same time, Dow continues to experience strong demand for polyethylene resins. Based on these conditions, Dow Europe GmbH is announcing a price increase across the European region for all polyethylene resins.

"The continuous rise in the cost of oil and the effect it has on raw materials is placing too great a pressure on our margins for polyethylene," said Isidro Quiroga, Commercial Vice President of Dow's Base Plastics portfolio in Europe, the Middle East and Africa. "In the current environment, this is an ongoing challenge, but we are committed to maintaining healthy margins to ensure that we are able to reinvest in manufacturing and innovation for our customers."

Effective August 1, 2006, Dow will increase prices in Europe by 80 Euro per metric ton for all grades of its lowdensity polyethylene (LDPE) resins and high-density polyethylene (HDPE) resins, DOWLEX™ polyethylene resins, ATTANE™ ultra low density polyethylene (ULDPE) copolymers, ELITE™ enhanced polyethylene resins and ASPUN™ fiber grade resins.

About The Dow Chemical Company

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For Editorial Information:

Shanna Wendt
Dow Europe GmbH
+41-44-728-2082